The latest survey from Gartner says a majority of enterprise risk leaders are assessing the impact of COVID-19 pandemic on organizational operations and controls
The coronavirus pandemic has forced enterprise risk management (ERM) teams to focus on evaluating supply chains, cybersecurity risks, and remote work issues, among others. The Gartner survey of 900 audit and risk leaders revealed that only 4% of respondents say updating the board is a primary focus during the pandemic.
Meanwhile, 21% of respondents said executing the audit plan is a top priority. These teams should provide senior leaders with insights on the risks that COVID-19 has amplified and provide some action steps to address them.
A large number of enterprise risk management teams, the board, and C-suite executives are postponing risk committee meetings. The survey showed that leaders are focusing on assessing the impact of coronavirus on organizational operations and controls and revising and executing the company audit plan. Other priorities of the respondents were assessing workforce needs and challenges (15%), updating the audit plan (15%), and assessing the impact on the business (15%),
ERM teams are monitoring several impacts of work from a home model that has become the new normal. Cybersecurity risk, shifts in productivity, and how they can operate an ERM program remotely, are some of the implications of remote working.
The survey says ERM leaders are taking the following measures-
- Reconsidering risk assessments to account for changes in risks such as supply chain and cybersecurity to execute remotely.
- Working with senior management to ensure cost optimization decisions account for risk and potential impact.
- Keeping constant communication with the board and management about specific risk-based insights surrounding near-term COVID-19 impact.
According to the survey, coronavirus has changed the risk landscape for several organizations as a majority of them have moved to mandatory or voluntary work-from-home model. Shifts in customer behavior, preparedness for optimizing cost, and supply-chain risk are other changes seen during the crisis.
Get Infographics here: Enterprise Risk Management Teams are Combating Covid-19